TAILIEUCHUNG - Trade and Environment: Conflicts and Opportunities

The combination of fragile, often steeply sloped terrain, low fertility, crops unsuited to the terrain, lack of external inputs, and “slash-and-burn” farming techniques results in serious and rapid soil exhaustion, erosion and sedimentation 3 [see Annex 1]. In these cases, cleared land has to be abandoned after only a few cropping seasons, triggering a need for further forest land conversion farther out on the agricultural frontier. The impacts of such “informal agricultural expansion” on downstream infrastructure, including roads, irrigation, water supply, and hydroelectric facilities often far exceed the value of the crops produced. The uncontrolled expansion of agriculture on marginal land is also a major cause of. | Trade and Environment Conflicts and Opportunities May 1992 OTA-BP-ITE-94 NTIS order PB92-182088 Recommended Citation . Congress Office of Technology Assessment Trade and Environment Conflicts and Opportunities OTA-BP-ITE-94 Washington DC . Government Printing Office May 1992 . For sale by the . Government Printing Office Superintendent of Documents Mail Stop SSOP Washington DC 20402-9328 Foreword The interactions between trade and environment have recently and suddenly-emerged as an important concern in Congress and in the world community. Given our increasingly interdependent world this should not be a surprise. Both environmental protection and trade are crucial to the welfare of nations and yet policies in both areas have developed for the most part in isolation from each other. This background paper describes what appears to be an enlarging potential for conflict between the two as reflected in disputes about the trade impacts of environmental laws and about the environmental impacts arising from efforts to liberalize trade and investment. These controversies have prompted discussions about ways to more closely coordinate policies both nationally and internationally. The issues are complex hence progress could be slow. However the payoff will be important not only in terms of avoiding future conflicts but in making the objective of environmental protection and the objective of economic progress more compatible. There is growing international awareness reflected in the upcoming United Nations Conference on Environment and Development this June in Rio de Janeiro that environmental protection will be essential for achieving economic progress in a sustainable reamer. And when countries have effective environmental policies in place some of the resources generated from trade and investment can be turned to environmental protection. The background paper explores some trade and environment questions especially from the context of the General Agreement on .

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